Paying PCP sooner

principlecounts

It's coming up to 12 months since I took out a PCP loan on a 2021 Vauxhall e-Corsa, just the car we needed at the time for local journeys and will be keeping for the foreseeable future. Has anyone attempted to pay the loan sooner? What did you do? I've heard people take out loans on better rates than the PCP deal - is this possible? Are there any other paths to consider? Once I get some good ideas, I'll share some numbers for motivation and to maybe inspire others.

born_again

Have you asked them for a settlement figure, if you can on a PCP deal?

principlecounts

born_again said:

Have you asked them for a settlement figure, if you can on a PCP deal?

I haven't yet. Asking basic questions, how is this useful, and to whom? 

CliveOfIndia

principlecounts said:

I've heard people take out loans on better rates than the PCP deal - is this possible?

Yes, it's one option.  But do remember that a lender can't force you to use a loan to pay off the PCP.  So when they run their affordability calculations, they have to assume that the new loan would be in addition to, not instead of, your existing debt.  This will affect how much and at what rate they're prepared to offer you.

born_again

principlecounts said:

born_again said:

Have you asked them for a settlement figure, if you can on a PCP deal?

I haven't yet. Asking basic questions, how is this useful, and to whom? 

I don't know if you can do this with PCP. A google says you can. But with loans you ask the lender for a settlement figure & you can then pay it off, simply paying that amount.

Do you have the funds to pay it off now?
Or are you just looking to pay more each month?

As ever ask the lender, what you could do & what costs.

principlecounts

The first task at the moment, is understanding the figures in my PCP agreement are correct so I know what I'm talking about when I start talking to third parties. I'll share my figures when I get to that stage.